Why do you want to stop working? Just one of the ‘Big Questions’ you need to ask yourself while making a ‘plan’ for your retirement
There have been many changes in pension legislation over the last few months. They have come thick and fast and it has left many people scratching their heads, wondering what it all means for them. Here at Lifetime we strive to help you answer your ‘big questions’.
Here is Lifetime Communications Director William Bottomley on the subject:
Why do you want to stop working?
It seems a simple enough question, but it’s one that always takes people by surprise. And the answer to the question varies between the incredulous, “I hate my job” through to “I need time to do the things that my time at work is preventing me from doing.”
Yet the surprising answer from many people is that they just don’t have a plan. Retiring to them is just ‘something you do’ and when you stop work you find other things to fill your days.
The many changes that have impacted on pensions over the last year or so, which have undoubtedly increased the flexibility of how we can access our “pots” and the fairness of what happens to the said “pots” on our death is of course welcome. These changes have thrown up many new questions that need answering for our clients.
What are the implications of staging tax free cash over a long period of time?
If I take all of my pot, what are the tax issues?
How do the death benefits work?
I don’t have to buy an Annuity but what are the alternatives?
However, there are many more fundamental questions that need answering that are much more important than these, the rules and regulations are helpful to provide a solution to the basic issues that everyone needs to address when they are contemplating their future lives without work, or even, in some cases, with less work.
Planning for this time is essential. The earlier you start the more choices you have, but whenever you start to take this subject seriously you will benefit from answering the “big” questions below.
What do I want to do when I stop working?
What lifestyle do I want?
When can I afford to stop working?
What sort of lifestyle will my Pot buy me?
How much do I need to put into my Pot to ensure I can have the lifestyle I want in the future?
Am I going to run out of money?
If you can’t answer all of those big questions, then you are in for an unpleasant surprise the day you walk out of work for the last time! If you can’t answer them all…get some help.
Dare we suggest that the help you need is not to really understand the legislation, but rather to understand why you want to stop working and to make your plan.
Proper financial planning is central to everything we do here at Lifetime. We strive to answer your ‘big’ questions, and in doing so help you live the life you want.